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AlwaysFree: Inpex Corporation - Notice Regarding Changes in Accounting Principles


According to the company’s website press release on May 10, 2023,  INPEX CORPORATION (INPEX) announced that International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021) (hereinafter, “amendments”) has been applied to some foreign consolidated subsidiaries and foreign equity-method affiliates of the INPEX Group from the first quarter of the fiscal year ending December 31, 2023(*). 

The amendments clarify the accounting treatment of deferred taxes relating to assets and liabilities arising from a single transaction. The application of the amendments will recognize deferred tax liabilities and deferred tax assets arising from the same amount of taxable temporary difference and deductible temporary difference at the time of transaction, such as leases and decommissioning obligations. Since the amendments are applied to the fiscal year beginning on or after January 1, 2023, INPEX has retrospectively recognized the cumulative impact by revising the retained earnings at the beginning of the reference period (fiscal year ended December 31, 2022), and has revised subsequent profits and losses based on the amendments. 

As a result, the consolidated balance sheet as of December 31, 2022, decreased by 2,451 million yen in investment securities, increased by 13,540 million yen in deferred tax liabilities, decreased by 10,983 million yen in retained earnings, and decreased by 5,008 million yen in translation adjustments, compared to the figures before the retrospective application of the amendments. In addition, in the consolidated statement of income for the fiscal year ended December 31, 2022, net income attributable to owners of parent increased by 22,792 million yen due to an increase of 3,752 million yen in equity in earnings of affiliates and a decrease of 19,040 million yen in income taxes-deferred. As the cumulative impact was reflected in the net assets as of the beginning of the fiscal year ended December 31, 2022, the balance of retained earnings as of the beginning of the previous fiscal year decreased by 33,776 million yen. 

The Company’s consolidated balance sheet, consolidated statement of income, and consolidated statement of changes in net assets for the fiscal year ended December 31, 2022 before and after the application of the amendments are as shown in the attachment.

(*) INPEX Group's consolidated financial statements follow the generally accepted accounting principles in Japan. If the accounting statements of foreign subsidiaries and foreign equity- method affiliates are prepared in accordance with International Financial Reporting Standards or US GAAP, the Company uses them in the consolidated accounting procedures. 

(Related accounting standards: "Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements" (Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task Force No.18, June 28, 2019)) 

Media Contact: INPEX Tokyo Office, Public Relations Group, Tel) +81-3-5572-0233

Tags: All Products,AlwaysFree,Asia Pacific,English,Japan,NEA

Published on May 25, 2023 5:33 PM (GMT+8)
Last Updated on May 25, 2023 5:33 PM (GMT+8)